Richardson, who was speaking to an audience of about 70 at a parent event sponsored by the Birmingham Council of PTAs, said the financial plan implemented this summer saved just $8 million of the $12 million expected. That plan cut or demoted hundreds of employees but didn't save as much as expected, in part, because of a policy Birmingham had that allowed demoted employees to continue receiving their current pay for one year. That policy has since been rescinded but the employees affected by those demotions were grandfathered in.

The district also will lose $1.5 million in state funding next year because of declining enrollment, Richardson said.

Despite the cuts necessary to meet a state requirement that districts keep at least one month worth of operating expenses in a reserve account, which for Birmingham is about $17 million, Richardson said the district has a lot going for it.

"I was not optimistic we were going to turn the district around into something other than an inner city school district with inner city problems," Richardson said. "But we found some excellent principals here. We've got some dedicated teachers here, some beautiful schools. We also found a community with no children in Birmingham city schools that care about the district. Across this country, you find no strong community without strong community schools."

Richardson said based on the district's student population of fewer than 25,000, the district should be operating 40 schools. It has 50.

The district's middle schools, he said, are operating far under capacity. The minimum number of students in a middle school, according to national research, is 400, he said.

"There isn't one middle school in Birmingham operating at the minimum," Richardson said.

Demographers are looking at population trends in the city, which will be used when determining what schools should close. Part of the problem now, Richardson said, is that Birmingham doesn't adhere to its attendance zones, so educators never know what students will show up at which schools until the school year begins.

That wreaks havoc on the district, as they struggle for the next several weeks to transfer teachers and other faculty members, said Superintendent Craig Witherspoon.

The school consolidation proposal will include new attendance zones which will be strictly enforced, Richardson said. If school closings and consolidations are not approved, it means personnel cuts will be more severe, he added.

Personnel will still have to be cut even with school closures but not nearly to the extent it would if schools weren't closed, he said.

Richardson spoke about his plans before taking questions from the audience that included questions about where the district stood on an inquiry from an accreditation agency, which said it had concerns with the Birmingham Board of Education.

The Birmingham Board of Education passed a resolution Sept. 25 saying it intended to go to training and professional development and would implement future phases of a financial recovery plan. That resolution was used to respond to AdvancEd's concerns.

Richardson said he expects to hear back from AdvancEd in January about whether Birmingham's response was accepted or whether an investigation would be launched.

After the meeting, parents and community members applauded Richardson and Witherspoon for speaking so candidly to them.

"I think it was informative and I feel like the questions were addressed," said Daagye Hendricks, a parent at Phillips Academy. "I'm more optimistic now because I see a cohesive unit working together for the best interest of the children."

Hendricks said her main concern now is what criteria will be used in determining what schools should close.

"Will it be based on performance of teachers? Of students? Population of the city? How many students attend the school? What criteria will they use?" she said.

Otis Dismuke, a Roebuck resident, said he doesn't have a problem with school closures. His main concern is what happens to communities when a school shutters and becomes an eyesore.

"Atlanta just went through school closures and had a committee called the School Reuse Committee, which made recommendations for the use of vacant buildings so they wouldn't become an eyesore or a place for vagrants to continue to run down the neighborhood," he said, adding that Birmingham should form a similar committee.

"We have to at some point realize we have too many underutilized schools in Birmingham," he said. "But we need to do something with those buildings once we close them."